We are very excited to have Benjamin Bale join our team. Ben has over a decade’s worth of experience in insurance, mortgages, transportation, and education businesses. Contact Ben at 480-525-7722 if you are looking to purchase or sell a business, Ben will be more than happy to guide you through the process.
If you’re the owner of an independent, family-owned auto repair shop in Phoenix, you may be reaching a point in your career where you want a new challenge or you’re ready to retire and hand over the business to another pair of capable hands.
Selling a business is a big decision to make, and it should be considered carefully. Regardless of the industry, selling requires a lot of planning and preparation that, if not done carefully enough, can actually hinder the process instead of helping it.
The good news is, if you’re a business owner in Phoenix who is looking to sell, there has never been a better time to get the process started.
Strong Population Growth
According to data released by the US Census Bureau in May 2017, Phoenix’s population increased the most in the United States between June 2015 and July 2016. The total growth was an additional 32,113 persons.
Nearly five million people currently live in the Phoenix area as of 2018, and this number is expected to grow over 8 percent in the next five years.
Population growth is good news for business owners and those who are looking to sell, as it widens the potential pool of buyers. It’s also an indicator that the Phoenix market is starting to return to pre-recession norms. Steady increases in population help fuel the success of construction businesses, retail, restaurants and other services, including automotive.
Large Pool of Buyers
According to LINK’s internal figures, buyers are ready to pay top dollar to purchase automotive shops that have revenues from $100K to $1M. With such a large pool of interested buyers, sellers can certainly drive a competitive price to ensure they earn the most profit from the sale.
What Are Buyers Looking For?
If you’re set on selling your automotive business, you may be wondering what buyers are looking for when they consider whether or not to purchase a new business. Typically, buyers look for the following in an automotive business:
- Well-functioning: Does each of the staff know what their roles are? Are they well-managed and cohesive, and do they work well together? Are processes in place that keep things moving smoothly and make it easy to address customer issues and other problems that might arise?
- Situated in an ideal location: Is it easy to get to, is there plenty of parking for customers, does it have enough road visibility?
- Well-trained technician team: Are the technicians and staff employed there skillful and reliable? Will certified technicians stay on after the transition?
- Established customer base: Does the shop have a steady stream of business and maintain a good standing reputation in the community?
- Longevity: A business that has been in operation for a long time is often a good indicator of future success.
If you believe it may be time to start the selling process of your established Phoenix automotive business, contact a business broker at LINK today. We can help you get started with the first steps toward a successful sale and let you know exactly what’s involved from start to finish.
What Sellers Need to Know
Arizona is a popular winter destination for people who live in chilly climates, and spa visits deliver the pampering experience people enjoy during vacations or regular life. When selling medical spas in the Phoenix area, prepare to discuss the flow of money that comes in from the snowbird and tourist crowd with potential buyers. A plan to demonstrate what sets your spa apart from the competition is also a good idea.
Tips for Getting Ready to Sell Your Arizona Spa
There are also some other things you can do to make your business practically irresistible to buyers. Be ready with answers to some common buyer’s concerns, and plan to show the buyer how easy it will be to take over the business.
Know Why Are You Selling the Business
Very few people want to buy a business that’s failing, so why you’re selling is one of the first things you need to be ready to explain, as noted by Investopedia. Plan to talk about things like being ready for a different challenge, looking forward to retirement or whatever detail is true for your situation.
Things That Make a Business Look Good to a Buyer
If you’re selling because the business isn’t producing as much income as you expected, it’s best to tell the truth. The buyer is going to want to see the books anyway. However, lead with the positive things about your business. This gets the buyer emotionally invested and excited about the idea of running a spa. Here are some things buyers might look for.
Positive Cash Flow
Money is a powerful motivator, so if your business shows positive cash flow, that’s a selling point you need to leverage. Have tax information and accounting records prepared and organized. This lets buyers quickly scan the information and feel good about buying. Understand that what a potential buyer considers a good income might be different than the amount you consider a good income.
The physical amenities at your facility are strong selling points. Buyers want to know what permanent and semi-permanent features come with the deal. Things like a steam room, wet room and elegant design elements make the venue more inviting for guests. An inviting setting offers the type of pampering tourists want when spending winter in the Phoenix area. So, let buyers see that the spa is or can become a sought after destination.
What are the most popular services at your spa? Be ready to tell buyers which services attract the most customers and bring in the most money. If your spa is known for its hot stone massage or aromatherapy treatments, let buyers know that. Share testimonials from clients who enjoy your services if possible. This helps buyers who want to add their own touches to the business get a clear view of which services to keep.
An entrepreneur new to the spa business might hesitate to jump into it from scratch. If your well-trained employees are willing to stay on, that eases the transition to business ownership for the buyer. You may even want to offer your own services if you’re willing to stay on to train the new owner or stay on as an employee as part of a phase out plan.
Selling your business is a big decision, and there are a lot of things you can do to close the sale quickly. Have all the information ready and available. Then, ask potential buyers up front what they are looking for in a business. This is the easiest way to find out which facets of your company to point out first. The selling points a buyer values may be different from the ones that appeal most to you.
Medical Aesthetics and the art of providing therapeutic anti-aging treatments and skin care is one of the industries that is considered high growth and potential, so much so, that everyone wants a piece of the revenue pie. According to The National Laser Institute, “Americans spent over $16 billion on cosmetic procedures last year.” The whole marketplace is moving into new markets resulting in increased revenue, more jobs, innovative treatments, and substantial business opportunities.
In 2016, the top 4 minimally invasive in-office procedures were – no real surprise here – Botox injections, fillers, chemical peels, and laser hair removal. The growth of these procedures in the last decade are staggering. The American Society of Plastic Surgery (ASPS) stated that the growth of procedures from 2015 to 2016 was 3% but that translates into a total of 17.1 million procedures.
So what should we look forward to in 2018 and beyond? The American Spa Association, during a recent seminar, highlighted a number of beauty trends that Spa/Salons, Day Spas, and Medical Spas should be aware of. The biggest beauty trends (and these may not be new) include the continued search of long, lush lashes; the search for foundations that best match a wide range of skin tones individually, and not the thought that “one size fits all”; moving away from heavily made-up lips but looking for a more natural looking lip dressing. Also, the use of facial rollers to enhance skin therapies. Also on the product front, masks will continue to make inroads into the skin care regimens. The main points are for total customization of makeup regimens and a more natural makeup look.
What about the trends in the medical directed spas? Some of the trends involve minimally invasive procedures but it is important to know what is happening. Dermal fillers, particularly bendable filers, will remain high on the list of cosmetic procedures requested and used in medical aesthetics. Some Day Spas and Salon/Spas are adding a Nurse injector one day a week to add the services to the menu. A qualified dermal filler provider will be the best option for providing the procedure. The key is that the filler is customized to the patient and to the site. Three additional, more invasive cosmetic procedures, are high on the list for 2018. Vaginal rejuvenation, injectable rhinoplasty, and transgender/feminization procedures are all sought after and will make major advances during this year.
What about business trends? One major business direction is pursuing the millennials in full force. They are not completely tagged for marketing campaigns, so go after them with programs designed to bring them into your shops. As a subset of this group, are the programs designed for “mantainence” and keying in on the hardest group to touch, the male population. You will see a greater emphasis on this target group throughout 2018 and beyond. Also, the use of the term “Prejuvenation” as a new popular buzzword for the future. Use this term rather than rejuvenation (which can still be used with certain demographics) for the idea of being proactive with treatment regimens, proactive to start non-invasive beauty and skin treatments early to prevent aging skin rather than correct or repair.
2018 will be dynamic with many opportunities to add clients, patients, treatment modalities, and in the end revenue to your business.
We are very excited to have Steven Benson join our team. Steven has been a business broker since 1979 and has been involved in nearly 2000 business sales. As such he is certainly among an elite group of brokers when it comes to experience. Steve has owned and/or brokered 10 business broker offices in his career including some of the top offices in his network. He has won numerous awards including Top Office Awards, Top Salesperson Awards and the prestigious “Business Broker Hall of Fame” with the various organizations he has been involved in. He is a past Chair, a past Vice Chair, and is a past Director for CABB. During his career, Steve has developed or helped develop many courses for the industry and has trained Business Brokers all over the US and in Canada. With his extensive experience, Steve has the knowledge needed to handle just about any business type out there and invites you to call and discuss your questions or concerns about buying or selling a business.
Fred Carr is the Medical SPA expert at LINK Business-Phoenix, contact Fred if you have questions about the Medical Spa industry or if you want to sell your
medical business. If you have any questions regard the SPA industry feel free to post a question here or contact Fred directly.